Scott's Rules of Negotiation
A few years ago my friend Scott told me about his four rules of negotion. I have had the opportunity to share these with a several others along the way and all of us have found them very, very helpful and useful.
Rule #1. The deal needs to be structurally sound. In other words, it actually has to be workable for both parties, most preferably in a win-win sort of way. This is your "Plan A"
Rule #2. Create a "Plan B"--an attactive alternative that would work if "Plan A" didn't work out.
Rule #3. Talk yourself into "Plan B" developing the merits so that in the final analysis, "Plan B" wouldn't be all that bad. You now really have two good alternatives. This puts you in the position to execute rule #4.
Rule #4. Never bluff.
I saw rule #4 work itself out one time when an employee walked into Scott's office and boldly stated, "If I don't get a raise, I'm going to have to pursue other opportunities." This was a bluff, but Scott didn't blink. He promptly stood up, extended his hand across the desk and said, "Congratulations, I always like to see our former employees move on to bigger and better things..." and he was gone! Rule #4 "Never bluff."